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What Happens to My Work Claim if My Company Closes?

If your employer closes while you have an open workers’ compensation claim, it can complicate the process of receiving benefits. However, the fact that your employer has closed does not mean that your claim will be denied or that you will not receive benefits.

In most cases, if your employer goes out of business, their workers’ compensation insurance policy should still cover your claim. However, it may be more difficult to receive benefits if the employer did not have workers’ compensation insurance at the time of your injury.

If your employer had workers’ compensation insurance and has since gone out of business, you should contact the workers’ compensation insurer to find out what steps to take next. In some cases, the insurance company may appoint a third-party administrator to handle the claims of the employer’s former employees. If the insurance company denies your claim, you may need to file a claim with the state workers’ compensation agency or seek legal representation to appeal the denial. In some cases, you may also be able to file a claim against your employer’s bankruptcy estate.

It is important to note that workers’ compensation laws vary by state, so the specific steps you need to take will depend on the laws of the state where you were injured. An experienced workers’ compensation attorney can help you navigate the process and ensure that your rights are protected.

If you are in a situation as described above, it is important to act immediately to protect your rights. Contact the workers’ compensation insurer or seek legal representation to ensure that you receive the benefits you are entitled to under the law. At Harvey & Carpenter, our experienced workers compensations attorneys have more than 50+ years of experience representing injured workers. Act now and speak with one of our attorneys to make sure your rights are protected.

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